During volatile markets, asset allocation is your best friend5 min read . Updated: 15 Oct 2018, 09:03 AM IST
Planners recommend multiple asset classes so that if one falls, others can balance it
As television anchors took us through the near 1,000- point drop in the Sensex index, early Thursday morning, following the sharp fall in the US markets, Mumbai-based Vishal Shah, 41, was gleeful. He saw an opportunity. He called up his financial planner Kalpesh Ashar to invest a fat amount of money—he didn’t tell us how much but made it sound it was a chunk—in equity funds. Shah had booked profits from equity funds and sold some of his equity shares in 2017 as he couldn’t justify the (high levels in) market. The booked profits were parked in some ultra short-term and short-term funds. Although Shah comes from a family that swears by equity investments, Ashar introduced him to liquid and ultra short-term funds as a means to bring down the risk levels in the portfolio.